AREIT – UOBKH

Secures new development projects

Two new development projects. A-REIT has committed to two development projects worth S$277m:

• two suburban business park facilities, including an amenity centre, at Plot 8 Changi Business Park to be completed in three phases; and
• an industrial facility at Pioneer Walk.

The built-to-suit portion at Changi Business Park of about 42,000sm is already pre-committed to a leading international financial institution.

Occupancy rate edges higher. A-REIT has renewed and signed new leases (including expansions) amounting to total net lettable area of 71,433sm for the September quarter. These leases represent 10.4% of the net lettable area for AREIT’s multi-tenanted buildings and generate annualised rental income of S$16.9m. A-REIT overall occupancy rate has increased to a high of 98.3% at Sep 07 compared to 97.2% last year. Occupancy rate for multi-tenanted buildings has also increased to 96.2% compared to 95.0% last year.

BUY
Current Price: S$2.42
Target Price: S$2.73